Money Talk: Mind the GAP Coverage Limitations
Question: In 2012, I financed a 2008 Honda at my credit union. The car was priced at $16,500. With a trade-in, the loan came to $22,000. Guaranteed Auto Protection coverage, or GAP, was factored into the loan payments, which were $464 a month. Last year, the car was wrecked and deemed a total loss by the insurance company. They paid the “book value” of $8,860 to the credit union. However, $6,000 remained on the loan. The GAP coverage...
Some Funds Offer Stability, But at a Price
New York — Freaked out by the stock market’s big swings? Then the investment industry has something it built just for you: funds that hope to offer a steadier ride. That sounds especially comforting after this year’s jarring start for markets, in which drops of more than 1 percent have become typical. But be careful, the funds carry their own risks. These mutual funds and exchange-traded funds own stocks that could charitably be...
Rent Vs. Buy: 3 Questions for Boomer Buyers
Washington — Baby boomers have become one of the major drivers of rental demand over the past decade, according to a study by Harvard University’s Joint Center for Housing Studies. Other research finds that boomers accounted for twice the growth in renter households as millennials did since the recession — and their ranks will only grow as more boomers reach retirement age. But is renting in retirement a smart financial decision?...
